Wednesday, February 19, 2014

The Gold Price Gave Back $4.10 Today Closing at $1,320.60

Gold Price Close Today : 1320.60
Change : -4.10 or -0.31%

Silver Price Close Today : 21.844
Change : -0.047 or -0.21%

Gold Silver Ratio Today : 60.456
Change : -0.057 or -0.10%

Silver Gold Ratio Today : 0.01654
Change : 0.000016 or 0.10%

Platinum Price Close Today : 1422.90
Change : 0.00 or 0.00%

Palladium Price Close Today : 735.20
Change : 1.75 or 0.24%

S&P 500 : 1,828.75
Change : -12.01 or -0.65%

Dow In GOLD$ : $251.09
Change : $ (0.62) or -0.25%

Dow in GOLD oz : 12.146
Change : -0.030 or -0.25%

Dow in SILVER oz : 734.32
Change : -2.53 or -0.34%

Dow Industrial : 16,040.56
Change : -89.84 or -0.56%

US Dollar Index : 80.220
Change : 0.170 or 0.21%

After a twelve-day winning streak (less one day for gold) it wasn't surprising that silver and GOLD PRICES took a rest. The gold price gave back $4.10 to $1,320.60. The SILVER PRICE lost 4.7 cents to 2184.4c.

A tiny dip like today's is no cause for worry. Bigger question is what silver and GOLD PRICES will do as the correction progresses. Best if gold holds above $1,300 and silver above 2100c. Since none of us has a crystal ball, we can only buy the dips and hope. It would, however, be very unusual for any market to make a breakout as dramatic as silver's on Friday, following 2-1/2 months of range trading and coming off a six-month double bottom simply to wilt and drop. I don't expect that, but bull markets climb a wall of worry.

In another stunning display of a central bank's ability to promote instability in markets, the FOMC meeting minutes published today show that the Fed MIGHT back off its long standing promise to keep interest rates low until frogs fly.

Is this stupid? Let me count the ways. First, the Fed has addicted stocks to low interest rates and printing money, so whenever they breathe a hint of change, stocks tremble like they had the DTs. Second, rising interest rates normally accompany a recovering stock market. Third, low rates are devastating and will blow up pension and retirement plans and killing savers. Fourth, low rates keep money flowing to uneconomic businesses rather than cleansing the economy by cutting them off with high rates.

Is that enough?

Fed's FOMC minutes depressed stocks today. Dow plumped down 89.84 (0.56%) to 16,040.56. S&P500 sighed and sank 12.01 (0.65%) to 1,828.75.

Dow in Gold still hasn't closed below its 200 DMA (11.91 oz) yet. Today it lost only 0.42% to 12.15 oz (G$251.16 gold dollars). Dow in silver fell minutely, 0.1%, to 734.12 oz.

US DOLLAR INDEX bounced predictably off the bottom boundary of its range -- predictably but not meaningfully, up 17 basis points (0.21%) to 80.22. Everything about the dollar points lower, but who knows what might make the Nice Government Men change their minds?

Euro backed off 0.17% to $1.3736, but remains about that old uptrend line so should inch higher. Yen rose 0.03% to 97.73. Moving sideways.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.